Uploaded by Mika Estrella

Recommending a Loan Activity

Question: Which type of real estate loan would be best for a borrower who plans to hold a
property for approximately six years, understands the benefits of leverage, and prefers
predictable payment? The borrower has a good credit score, $40,000 available for a down
payment and is interested in a $275,000 property. The borrowers DTI will allow qualification for
conventional or FHA financing.
Answer 90% conventional 30 yr fixed rate at 5.25%, 1 point
MOST lenders don’t really offer or like to offer anything under 90 LTV
Borrower avoids PMI